G R Infraprojects (GRINFRA) Q2 24/25 earnings summary

Executive summary

• Revenue performance in Q2 FY25 varied, with one report noting a decline to INR 1,128 crores due to rainfall and fewer orders, while another cited a 37.19% year-over-year increase to Rs 20,047 Mn, and consolidated revenue for H1 FY25 at ₹3,42,462.97 lakhs.

• PAT margin showed mixed trends: standalone PAT margin decreased to INR 114.82 crores, while another report showed improvement to 10.32% in Q2 FY25, and consolidated net profit for H1 FY25 was ₹34,964.50 lakhs.

• Order book remains robust, reported at INR 20,680 crores and Rs 1,46,405 Mn as of September 2024, with potential to reach Rs 1,96,409 Mn with new wins.

• Company transferred operational HAM assets to Bharat Highways InvIT and sold 100% stake in a subsidiary, resulting in exceptional gains.

• Approved unaudited financial results for the quarter and half year ended 30 September 2024, and expanded into power transmission with new acquisitions.

Financial highlights

• Standalone revenue from operations for H1 FY25 was ₹3,02,462.47 lakhs; consolidated revenue was ₹3,42,462.97 lakhs; standalone net profit was ₹26,678.00 lakhs.

• EBITDA margin for Q2 FY25 was 10.39% (standalone), with group EBITDA margin at 25.32%; operating margin (standalone) was 12.03%.

• Standalone net worth at September 2024 was INR 7,466.75 crores; consolidated net worth was INR 7,956 crores.

• Standalone borrowing at September 2024 was INR 689 crores (debt-to-equity 0.09-0.10x); consolidated borrowing was INR 4,301 crores (debt-to-equity 0.55x).

• Working capital days increased to 153, mainly due to higher SPV debtors.

Outlook and guidance

• FY25 revenue guidance revised to a possible 5-10% decline, but double-digit growth is targeted for FY26 if new orders materialize.

• Margin guidance for FY25 is 12-13%, with a return to 14-15% expected in FY26 as capacity utilization improves.

• Order book expected to strengthen with new project wins, including recent acquisitions in power transmission.

• Targeting INR 20,000 crores in order inflow for FY25, with INR 5,000 crores already received and INR 15,000 crores expected in H2.